Sentence examples for assumes rational from inspiring English sources

The utopian construct assumes rational forms.

The critical disadvantage to this approach is that it assumes rational expectations instead of testing them.

The hypothesis implies a theory of consumption that assumes rational behavior by consumers.

While standard theory assumes rational, optimizing agents under full information, the latter is rarely found in reality.

Following Verbon and Verhoeven ([1992]), Meijdam and Verbon ([1997]), and Ono ([2005]), this paper assumes rational expectations and myopic decision making.

The policy recommendation is robust: the welfare loss entailed by optimal policy under learning if the private sector actually has rational expectations is much smaller than if the central bank mistakenly assumes rational expectations when in fact agents are learning.

That is because they are designed assuming rational behaviour, whereas markets have a nasty tendency to react unpredictably.

In the 1970s, Lucas and disciples take it up a notch, arguing that we should assume rational expectations: people make the best predictions possible given the available information.

Lambert also showed that the functions e x and tanx cannot assume rational values if x is a non-zero rational number.

The goal of this paper is to study the economic implications of this shift in Internet traffic control assuming rational ISPs and subscribers.

Thus, we cannot simply assume rational expectation of reward based on neither previous stimulus reinforcement nor direct variation of apparent probability, particularly within gambling type tasks.